One of the most interesting aspects of real estate investment is the overall diversity this asset class possesses. Single-family homes, 100+ unit apartment buildings, self-storage, and Class A office buildings all offer unique commercial investment attributes with very different execution strategies.
As our individual investment journeys have progressed, we’ve enjoyed learning about and diving into some of the more unique real-estate asset types in order to create both a return on investment and value for our community. As limited supply and price pressures have created headwinds for traditional residential investing, learning to see value where others aren’t looking can be a great way to open some unconventional investment doors.
The Property
A few years back, we encountered a unique property that was in need of some love but also presented interesting potential. The property is located in Catonsville Junction, a small commercial off-shoot outside of the town’s Main Street that features similar mixed retail and food service businesses thriving on foot traffic.
At the time, this specific property possessed two long-standing commercial tenants, each with a loyal customer base. It also contained a vacant commercial unit, old storage containers, and a large under-utilized lot. When we began running our due diligence on the property, we were in the height of COVID, and many restaurants and retail establishments had been shuttered, either temporarily or permanently.
The Vision
The unique nature of the property and the ongoing pandemic made the due-diligence process more challenging than a typical real-estate transaction. However, we had enough confidence in a few key factors to move forward with the purchase. We believed in the businesses of the existing tenants and in the viability of the vision we developed for the under-utilized aspects of the property.
It was clear that COVID had shifted people’s preferences towards outdoor dining, and we recognized the lack of outdoor dining options in the area. We envisioned a diverse outdoor dining/event venue that would not only benefit the community but also drive foot traffic to surrounding businesses. We pulled the trigger and moved forward with this vision in mind.
The Process
Bringing this vision to life required the development of approximately 6,000 sq. ft. of disintegrating asphalt and dirt at the back of the property. We expanded the existing parking lot to accommodate increased traffic and future food trucks that we hoped would frequent the property. The seating area was designed with two adjacent pavilions, a mix of fixed seating, commercial picnic tables, and even a fire pit to encourage year-round outdoor dining.
The most significant part of the project was installing a new commercial kitchen to provide prep space, dry and cold storage, dishwashing, and more for the food trucks serving at the property. The permitting process, especially during COVID, was cumbersome and lengthy. The property slopes downward as it moves away from the road so there were also unique challenges in dealing with the increased sanitary drainage requirements of the kitchen. With all that being said, we still managed to complete the project within two weeks of our original anticipated opening date.
The Results
Today, The Commissary at Cville Junction is an active, thriving property that represents a successful Catonsville commercial investment and development. On any given weekend, you can find up to three food trucks serving at the property, frequently accompanied by live music. Numerous annual events, such as client appreciation events, happy hours, and fundraisers, are hosted here at the Commissary. Local businesses also have the opportunity to promote themselves by hanging signs along the fence that borders the property.
All in all, the project proved to be both challenging and rewarding. It was a great learning opportunity and continues to be a valuable asset to the community.
If you own a commercial property in Catonsville and are looking to leverage its attributes, we can help you create a win-win for both your investment and the community. Let’s work together.